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Non-Tech : Berkshire Hathaway Class B -- Ignore unavailable to you. Want to Upgrade?

To: Charles T. Russell who wrote (474)	1/24/1999 2:40:00 AM
From: 16yearcycle	Respond to of 1652

"It isn't up to WB to get the stock included in the S&P. It will happen of its own accord." Charles, 1. Brk is the largest company by market cap not included in the s&p. By a lot, since brk now has the largest book value of any U.S. company. 2. Brk had a chance just in December, in case you aren't following the news or this thread, and missed getting into the s&p because of the liquidity problems involved in including a company with 1,200,000+ shares pre-merger,a stupid low number, and 40% owned by a guy who never sells. 3. Therefore, it is totally up to WEB whether brk gets in the s&p. It isn't happening because of the limited number of shares. In mid December there where a few stories about this. It would be a huge problem for index funds which are causing the recent depression of the stock price. This Barron's article runs counter what was understood in December. 4. Brk is grotesquely undervalued vs. this market. I have spoken to other shareholders who follow the numbers and it strains the memory to remember it selling at a 1.5x book, with a high multiple book on the market. I would suggest that it hasn't been this undervalued since 1990, and perhaps 1980-81. 5. "Even in a pretty steep correction, this stock has held." The stock did not hold up as well as the net stocks in the 9-10/98 correction. It was obscene,absurd and related to confusion over this merger, which brk has done little to ease. My guess is that WEB may see this time as a repeat of the late 60's, and is uninterested in doing anything to change his tactics, and expecting to teach the impatient an important lesson. I hope that he will see that his investments are underperforming the market in a big way, and that they are poised to continue that trend for awhile, before returning to 10-15% long term growth. I am hoping he will make some positive comments about BRK, but he is so visionary and disciplined, that I think he won't.